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Nearly 200 houses are set to be built as part of a new special housing development in Ngongotaha, the first under Rotorua's new housing accord.

But members of a council committee have recommended a proposal for another special housing lot on Hamurana Rd not be approved.

In a report to councillors to be discussed at an extraordinary council meeting today, members of the Resource Management Act Policy Committee say the council should recommend a section of land at 31 Ngongotaha Rd to the Minister for Housing and Urban Development for establishment as a Special Housing Area.

Members of the committee include councillor Rob Kent, councillor Karen Hunt, and commissioner Gina Mohi.

"We have failed over the last nine years to adequately provide housing for our people and the local market is bursting at the seams for good, affordable houses for Kiwi families to buy.

"Maori homeownership is at one of the lowest rates ever, and hopefully whanau will be able to participate in the uptake of housing stock."

He urged developers and iwi to actively request meetings with the Government to "better understand the Government's priorities around building warm dry affordable housing under our Kiwi Build policy".

"We certainly need collaboration in this area, as 100,000 new affordable houses over 10 years is a lofty goal, but highly achievable with the right partnerships in place."

Lifewise Rotorua manager Haehaetu Barrett said the Rotorua Homelessness Governance Group supported long-term housing solutions, particularly given a recent head count that identified more than 30 rough sleepers in the community.

Meanwhile, the council committee recommended another proposed development not move forward at this stage.

The proposed development would have featured 130 dwellings, with a mixture of one- to four-bedroom houses, at 41 Hamurana Rd.

While the committee said it supported the concept, "at this point in time we consider that this form of development on this site would be incongruous with the existing environment".

"In addition, there is the potential for significant reverse sensitivity issues to arise with both traffic noise and in relation to the surrounding rural land to the north and west that we do not consider have been adequately addressed, and questions as to whether the soil contamination issues can be appropriately remediated."